Investing is a risky business, especially in today's day and age. After witnessing multiple market crashes, many investors are nervous about the stability of the stock market. Precious metals have been making a resurgence. Gold and silver tend to increase in value as stocks plummet.
Goldmoney is one of many investment companies that help connect people with gold and silver. But are they legitimate?
First of all, they are a legitimate company with legitimate offerings. But they also have multiple complaints lodged against them. All in all, there are companies that offer the same things Goldmoney does without any of the drawbacks.
With that said, let's take a more in-depth look at what they offer and who can benefit from their services.
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About the Company
The company was first founded in 2001 and has been in business for the two decades since. They offer opportunities to invest in precious metals.
As of 2015, the company had joined with BitGold. This is a technology payment that helps to facilitate payments in gold, similar to other currency.
BitGold was founded by Joshua Crumb and Roy Sebag. The goal of the company is to connect investors to the precious metals that best suit their investment needs. In addition, there are services designed to help diversify and grow your portfolio over time.
How the System Works
The company's system is set up differently from many competitors on the market. It stands out when compared to others in the industry thanks to the Holding system. This system is an appealing option for people who don't have a strong financial background and who are new to the investment process.
You don't need to have much past financial experience to open a holding account. As long as you pay attention, you can quickly learn everything you need to know.
In addition, you can access tools to help you transfer metals between businesses and people. You can even use these tools to coordinate the transfer of metals between international entities.
With a holding account, you can invest in all four precious metals on today's market.
There is a requirement to invest in a minimum of one gram of gold. You can also store your precious metals with the company. The six international vaults that you can choose from are located in:
The company has stated that they intend to expand their storage options more over time. There are also storage options for self-directed IRA accounts, which must comply with stricter IRS standards.
The company has a program called Goldmoney Kids that aims to teach children about investing. If you want to give your kids a primer in the economy and planning for their future, that's the ideal. Information is presented in exciting and engaging ways that will keep kids engrossed.
The website is also relatively easy to use. It has a wealth of information about the economy, including ongoing updates on the stock market and the cost of precious metals. You can get a quick look at the state of the world economy just by glancing at the website updates.
Getting Signed Up
Goldmoney has a fair deal of complexity to it. But users can navigate around the website and explore their options without a lot of hassle.
Before you can make any additional accounts, you have to have a Holding account. That means you have to commit to holding a gram of gold. After you've done that, you can fund the account and purchase whatever precious metals you want.
Types of Account
There are several types of account that you can open. You can also have multiple accounts at one time. The right one for you varies depending on your circumstances and investment goals.
When you open a Personal account, you can store a maximum of 1,000 grams of gold without paying any annual or monthly fees for storage. You are given a legal title to a portion of a one-kilo gold bar.
In addition to the six international vaults, you can choose two vaults in the US. All purchases are fully insured.
You will pay a commission fee every time you sell or buy gold. Unlike many companies, this company gives you the option to pay for your metals using a debit card or credit card. However, you will need to pay an extra commission fee if you want to use a bank wire transfer instead.
You can sell your gold back to the dealer whenever you want, although you might not get the same price you paid for it.
Business accounts work almost identically to personal accounts. However, they also include payouts and invoices.
With invoices, you can bill customers for products and services, and then you'll receive payment in gold. If the customer chooses to use currency to pay, Goldmoney converts the payment into a gold purchase.
There is a small commission fee for invoices, but it is less than the one typically charged by Paypal.
With the payouts feature, you can pay vendors, contractors, and employees using gold instead of cash. This is helpful for reducing foreign exchange fees when you work with contractors on an international basis.
Wealth accounts are for people who own more than a kilogram of gold. With this account, you can store other types of precious metals along with several international currencies.
This allows you to easily trade between precious metals and currency whenever you need to liquidate holdings.
The company's fees are transparent and listed on their website. They don't seem to have a lot of hidden costs.
However, there is one important thing to note. The company bases their fees on a percentage of your overall holdings. That means that the more you own, the more you'll pay.
Many of the industry competitors use a flat fee structure instead. With this model, you'll pay exactly the same amount year to year, no matter how much money is in your account.
That's a favorable structure because it keeps you from losing money as your assets grow.
These are some of the fees you'll encounter:
There are also minuscule fees added to the cost of gold, silver, platinum, and palladium. Gold has the highest fees applied, which range from 0.01 to 0.018 percent of your purchase. That's not too high, but it will add up if you're making large gold purchases.
You can make money by referring people to the Goldmoney website. Once people sign up, you'll make commissions on their purchases. The commission rate varies, but it can get up to 25 percent.
That said, there are companies that offer better products that are easier to sell. While the referral program is a good incentive, you can find companies that offer better referrals with fewer overall complaints.
Safety of Your Investments
The precious metals industry is famous for being filled with scammers. These are companies that might give you fraudulent information about their products, pay you low prices for your own gold, or otherwise take your hard-earned money from you.
To be considered a scam company, a company would have to make false promises, take your money, and fail to deliver what they said they would. According to that definition, Goldmoney isn't a scam. They have been in business for more than two decades, and they are a legitimate company.
Though there are quite a few complaints, there are also a lot of customers who report having a good experience. That indicates that the company does follow through on their advertisements - but they might not have the best business practices.
They do work with secure vault companies. Some of their partners include Rhenus, Brinks, and the Royal Canadian Mint. You can expect your assets to be fully insured against theft, damage, and loss. That means you can get back their value if anything happens to them.
The company did have a stellar reputation in the industry for the first several years in business. However, since then, there has been a change of ownership. Most of the negative reviews have come from after the business changed hands. So it seems like the new owners haven't kept up the company integrity.
Changing ownership can change the customer service experience entirely. It's not always a dealbreaker, especially when the new owner works to win over the old clients. But that doesn't seem to be what has happened here.
It's unfortunate, but according to the data from real customers, you're much more likely to have a negative experience now than you were several years ago.
Some of the consumer reviews of the company are great. And of course, Goldmoney says that they have the best practices in the industry. But when you look at third party watchdogs, there's a different story. Some consumer reviews have been absolutely dreadful.
The Better Business Bureau does give them an overall A rating, but they are not an accredited business. Most businesses strive to become accredited after more than twenty years in the industry.
In addition, there have been a whopping 30 complaints on the BBB page in just three years. That's a huge number of complaints for a company to generate. Most reputable companies might have a handful of complaints over a half-decade, all of which they should do their best to resolve.
The next most concerning reviews come from TrustPilot. TrustPilot gives the company a 2.6 star rating out of 5, based on the average of 1,800 reviews. That means there were hundreds and hundreds of people who had only negative things to say. It's about a 50/50 split on whether people have a wonderful experience or awful one.
Ripoff Report, a third party company that keeps track of scams and company fraud, has seven total complaints against them. Again, that's a huge number. That said, the most recently filed complaint was in 2018, so it's possible that their practices have improved since then.
Many of the grievances center on access to people's accounts. People state that they were denied access to the money in their accounts, and that the company did not help them get back in. In addition, some people have noted that they were charged fees that were more expensive than they anticipated.
Most of the company's best reviews were written years ago. Ever since the ownership changed hands, the quality has gone downhill. Eighteen out of twenty reviews have just one or two stars when you look at recent complaints. That alone is enough for us to warn people away, regardless of their past reputation.
People say that they specifically began having bad experiences after the company changed hands. In fact, they say that they have closed accounts that they've had open for over a decade. Many note that they've lost most or all of their funds in the process of doing this.
All of this combined makes us very wary. If you're trusting a company with your assets and investments, you want to make sure that they have your best interests at heart. According to the recent reviews of Goldmoney, all the executives care about is padding their bottom line.
Another problem is that the customer service is subpar. People have struggled to communicate with the sales representatives, whom they describe as pushy and entitled. Some customers have said that they were charged extra fees with zero warning, which caused them to be in a precarious financial position.
Goldmoney might have been a great company once. It seems to have been founded on solid investment principles, and the people who used the services years ago were happy.
But ever since changing owners, the story has changed. There are so many negative reviews that we're wary of recommending them. Their fee structure is more expensive than a lot of the industry competition, and they don't have good enough customer service to compare.
If you're interested in investing in precious metals to protect your portfolio, it's better to work with a company that cares about doing the best thing for your wealth.
Although we do think that Goldmoney is a decent company, we believe that there are better companies out there to make your investment with.
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